Yangzijiang

Yangzijiang: CS cites strong order momentum, in addition to margin upside driven by the recent delivery of 10,000 TEU containerships. House maintains OUTPERFORM rating on the counter with $1.50 TP, with 1.0x P/B valuation currently close to historical lows. The company has delivered its first 10,000 TEU containership to Seaspan, with a further 20 units under construction and options for 4 units yet to be exercised. CS sees better than expected execution of the 10,000 TEU containership to drive margin upside, and its 2014 net profit forecast is 20% above consensus. House expects strong order momentum to be sustained driven by a recovery in commercial shipbuilding and fleet expansion by Seaspan.